5 of Pharma’s Most Disastrous Drug Approvals

A few warning stories about timing a pharma buy

Dificid

Optimer Pharmaceuticals (NASDAQ:OPTR) was absolutely on fire leading up to the FDA decision date on Dificid. Shares had gained 32% for the year right though the approval date on May 27, 2011. And why not? Dificid is a treatment for Clostridium difficile, which is a severe — sometimes life-threatening — form of diarrhea that is particularly problematic for cancer patients. There’s a real need for a solution here.

Unfortunately, there wasn’t a need for the stock after the drug was approved. OPTR got cut in half within two months.